User Account

All Pages

Prepare journal entries to record the payment of interest

Assignment Help Accounting Basics
Reference no: EM131788050

Question - Foreman Company issued $864,000 of 10%, 20-year bonds on January 1, 2011, at 102. Interest is payable semiannually on July 1 and January 1. Foreman Company uses the effective interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%.

Prepare the journal entries to record the following. (Round all intermediate calculations and answers to 0 decimal places, e.g. 5,510.

(a) The issuance of the bonds.

(b) The payment of interest and the related amortization on July 1, 2011.

(c) The accrual of interest and the related amortization on December 31, 2011.

Reference no: EM131788050

Questions Cloud

What recommendations do you have to stop such a fraud : How was the fraud committed? What was the outcome? What recommendations do you have to stop such a fraud relating to this conflict of interest?
What annual contributions to the retirement fund will allow : You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $12,000 for 25 years after retirement.
Discipline process of an unproductive employee : Discuss the counseling and discipline process of an unproductive employee.
Describe the distribution of ages by giving the shape : Describe the distribution of ages by giving the shape and, the numerical value for an appropriate measure of spread, as well as mentioning any outliers.
Prepare journal entries to record the payment of interest : Prepare the journal entries to record the following - The issuance of the bonds and The payment of interest
Attitude characteristics of the target market segment : Describe the likely demographic, psychographic and attitude characteristics of the target market segment for Lilybank Lodge
Prepare necessary adjusting entries at december : Prepare necessary adjusting entries at December 31 to record amortization required by the events above
Which of mrs diazs children is more unusually tall : Which of Mrs. Diaz's children is more unusually tall for his or her age and gender? Explain, showing any calculations you perform.
Computing the present value of future benefits : Rusty Steele will receive the following payments at the end of the next three years: $4,000, $7,000, and $9,000. Then from the end of the fourth year.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd